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Critical Analysis On Susan Rose Ackerman's Article "Bribes, Patronage And Gift Giving, As Well As Richard Friman And Peter Andreas' Article "International Relations And The Illicit Global Economy

1195 words - 5 pages

Corruption is not a new phenomenon in today's society, but it is an increasing problem. It is an ailment that causes many problems for countries, as well as international relations. When one thinks of corruption they do not think of the consequences that it brings along with it. However, in Susan Rose-Ackerman's' article "Bribes, Patronage, and Gift Giving" along with Richard Friman and Peter Andreas in their article "International Relations and the Illicit Global Economy" they provide two different types of corruption, and the negative effects it brings along with it. Although their approach to the topic is different their main emphases is the same, corruption is harmful.In Susan Rose-Ackerman's article she distinguishes between bribes, tips, gifts, and prices in a model that imposes the existence of a quid pro quo, and the presence or absence of an agent or a principal. According to Ackerman agency principal relationships in the public sector gives rise to corrupt opportunities. Therefore, Ackerman believes that one way to reduce corruption is to eliminate the agency principal relationship. If citizens dealt directly with the principal then bribes or "gifts" to the agent would be avoided. When an explicit exchange is taking place with a principal it is seen as a price, and with an agent it is seen as a bribe. On the other hand, if no quid pro quo is expected by the principal it is recognized as a gift and as a tip by the agent. However, if a gift is large enough to have an impact on the recipient's behaviour a quid pro is implicit.In this article Ackerman is arguing that in many societies there is no distinction between the public and private roles. Especially in developing countries where gift giving and patronage are accepted practices. In developing countries the line between market and family, and between the public and the private sector is often indistinct. She believes that although personal ties in the market can be functional they are not always compatible with efficiency. It can facilitate corruption and undermine the attempts to improve the operation of the state. Nevertheless, in societies with rooted interpersonal networks Ackerman believes that the citizens may care little about market and public sector efficiency. They believe they should give to their friends and family with expectations of a gift in return.Trade in patrimonial systems is a culture trading system that appears legitimate within that society. However, what Ackerman is arguing in this article is that societies based on personal relationships will have difficulty developing a large-scale capitalist enterprise, or supporting active cross-border trade. Since loyalty to family dominates loyalty to the state they will also have difficulty establishing modern bureaucracies. Thus, it is obvious that the costs for informal transfers in developing countries outweigh the benefits. She disputes that since the cause for so much corruption in these developing countries is due...

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